Monday, July 31 2017 14:26
Karine Melikyan

Total net profit of Armenian insurance companies in first half of 2017 fell by 51.6% per annum - to $ 2.6 million

Total net profit of Armenian insurance companies in first half of  2017 fell by 51.6% per annum - to $ 2.6 million

ArmInfo. The total net profit of Armenian insurance  companies in the first half of 2017 dropped 51.6% year-on-year  (against growth of 74% a year earlier) to 1.3 billion AMD or $ 2.6  million. According to the Ranking of Armenian insurance companies  prepared by NA ArmInfo, the deterioration in the annual dynamics was  caused by a sharp acceleration of the upward trend of insurance  claims from 0.7% to 30.5% with a continuing low growth rate of  insurance premiums - 4.7% against 4.2% a year earlier. In the annual  breakdown (I half-year of 2017 to the first half of the year 2016),  profit loss was observed for all six insurance companies, with RESO  being the most significant - by 2.2 times - with the departure from  plus to minus.

Only for the II quarter net profit of insurers increased by 44.6%  (against 0.5% growth a year earlier), which is due to a slowdown in  the rate of decline in premiums (from 32.6% to 22.8%) against the  backdrop of accelerating the decline in the volume of reimbursements  (from 7.1% to 10.2%). Moreover, in the quarterly analysis, two  companies managed to get out of the profit loss (growth of 2.4-3.2  times), two companies significantly increased their profit (by  61-93%), and only two companies reduced their profits (by 34-43 %).

The first place in terms of net profit for the first half-year is  held by Rosgosstrakh Armenia Insurance Company - 518.4 million AMD  (the annual decline is 56.7%). In second place is SC Nairi Insurance  with a profit of 307.4 million AMD (annual decline of 27.9%). TOP-3  is closed by IC "INGO Armenia" - 249.2 million AMD (annual decline by  52.4%). Then comes Armenia Insurance, with a profit of 230.6 million  (annual decline of 0.2%), Insurance Company Sil Insurance with a  profit of 3.5 million (annual decline of 91.6%). The list closes with  a minus indicator of IC "RESO" - 39.7 million AMD (annual decline of  2.2 times), having moved from profit to loss.

The total volume of insurance premiums for the first half of 2017,  according to the reports of the IC on IFRS standards, amounted to  16.6 billion AMD ($ 34.5 million), and insurance indemnities - 8.1  billion ($ 16.9 million). Insurance premiums totaled 7.2bln AMD for  the II quarter, and reimbursements - 3.8bln AMD. As a result, the  aggregate profit on the insurance line fell by 12.1% year-on-year to  8.4 billion ($ 17.6 million), demonstrating a more impressive decline  in the quarterly section - by 33.4% to 3.4 billion, at that time as a  year earlier increasing dynamics was in positive territory - 6.6%,  and quarterly in a more significant negative - 45.8%. The highest  profit on the insurance line was fixed in the first half of 2017 from  IC INGO Armenia - 2.4 billion (annual growth of 12.9%, quarterly  decline of 34.5%), the second position was taken by Rosgosstrakh  Armenia - (The annual decline is 22.3%, the quarterly decline is  56.7%), the third position is held by Nairi Insurance - 1.6 bln  (annual decline of 25.8%, quarter growth of 7.7%). "Sil Insurance",  "RESO" and "Armenia Insurance" continue to occupy the fourth, fifth  and sixth positions - 924.5 million, 745.8 million and 485.1 million  AMD, respectively, of which only "RESO" provided a quarterly growth  of this indicator, thereby slowing down the rate of the annual  recession, while the "Sil Insurance" and "Armenia Insurance"  quarterly decline triggered an annual decline.

To note, there are 6 companies operating in the Armenian insurance  market, out of which there are 17 insurance classes, except for  railway transport insurance and insurance of judicial and  extrajudicial expenses. For 16 classes, INGO Armenia Insurance  Company (the only one operating in the water transport insurance  category) was licensed, Rosgosstrakh Armenia Insurance Company was  licensed for 15 classes (the only one operating in the credit risk  insurance class). (The calculated exchange rate of the AMD to the USD  as of 30.06.17 was 480.47 AMD/USD1).


News
Banks of Armenia increased tax deductions to state treasury in 2021,  after decline in 2020Banks of Armenia increased tax deductions to state treasury in 2021,  after decline in 2020
Armenian banks managed to significantly increase net profit in 2021Armenian banks managed to significantly increase net profit in 2021
Tax payments: INGO Armenia leader of Armenia`s insurance sector Tax payments: INGO Armenia leader of Armenia`s insurance sector 
Ameriabank. The Largest Taxpayer among Armenian Banks  According to the Results of Year 2021Ameriabank. The Largest Taxpayer among Armenian Banks According to the Results of Year 2021
Pashinyan: The construction of the  Yeraskh-Julfa-Ordubad-Meghri-Horadis railway is not a heavy burden  for Armenia from a financial point of viewPashinyan: The construction of the  Yeraskh-Julfa-Ordubad-Meghri-Horadis railway is not a heavy burden  for Armenia from a financial point of view
Armenian telecom operators increased tax payments to state treasury  by 14% in 2021Armenian telecom operators increased tax payments to state treasury  by 14% in 2021
Armenia`s budget assistance to Artsakh in 2022 will amount to about  300 million US dollarsArmenia`s budget assistance to Artsakh in 2022 will amount to about  300 million US dollars
Zangezur Copper-Molybdenum Combine topped list of largest taxpayers  in ArmeniaZangezur Copper-Molybdenum Combine topped list of largest taxpayers  in Armenia
EBRD to provide US$25 million to Ameriabank under SMEs, WiB  programmes in ArmeniaEBRD to provide US$25 million to Ameriabank under SMEs, WiB  programmes in Armenia
Economist: Armenia`s export structure has degraded greatly over the  past 20 yearsEconomist: Armenia`s export structure has degraded greatly over the  past 20 years
We should consider opening roads with Turkey also in terms of  opportunitiesWe should consider opening roads with Turkey also in terms of  opportunities
David Papazian appointed Chairman of Board of Fly Arna  Armenia`s  national airlineDavid Papazian appointed Chairman of Board of Fly Arna  Armenia`s  national airline
Armenia simplifies licensing for number of activities for foreign  companiesArmenia simplifies licensing for number of activities for foreign  companies
Armenia once again extended embargo on scrap metal exports Armenia once again extended embargo on scrap metal exports 
NDU and Central Depository of Armenia signed a memorandum of cooperationNDU and Central Depository of Armenia signed a memorandum of cooperation
Moody`s assigns Ba3 IFSR to Export Insurance Agency of Armenia with  stable outlookMoody`s assigns Ba3 IFSR to Export Insurance Agency of Armenia with  stable outlook
Expert: Armenia will never be able to have a positive trade balance  with TurkeyExpert: Armenia will never be able to have a positive trade balance  with Turkey
Promise of Deputy Prime Minister: The price of gas will not increase  for socially disadvantaged groupsPromise of Deputy Prime Minister: The price of gas will not increase  for socially disadvantaged groups
First Istanbul-Yerevan flight of Pegasus Airlines is scheduled for  February 2First Istanbul-Yerevan flight of Pegasus Airlines is scheduled for  February 2
CMTPL e-policies continue to grow rapidly in Armenia, approaching  quarter of total number of contractsCMTPL e-policies continue to grow rapidly in Armenia, approaching  quarter of total number of contracts
Dairy products with milk fat substitutes and/or other additives will  be placed on separate store shelves in Armenia: ProjectDairy products with milk fat substitutes and/or other additives will  be placed on separate store shelves in Armenia: Project
Armenia`s Public Service Regulatory Commission approves sale of Filor Ventures Limited, Rostelecom`s  only foreign assetArmenia`s Public Service Regulatory Commission approves sale of Filor Ventures Limited, Rostelecom`s  only foreign asset
Hovhannes Khachatryan elected Deputy Head of Central Bank of ArmeniaHovhannes Khachatryan elected Deputy Head of Central Bank of Armenia
In 2021, EBRD portfolio in Armenia was record-breaking-$175 millionIn 2021, EBRD portfolio in Armenia was record-breaking-$175 million
Expert: Rise in energy prices in Armenia is a consequence of wrong,  uncalculated decisions of the authoritiesExpert: Rise in energy prices in Armenia is a consequence of wrong,  uncalculated decisions of the authorities
Economy Ministry announces launch of program to assist textile  industry in ArmeniaEconomy Ministry announces launch of program to assist textile  industry in Armenia
Government is preparing programs to support domestic producers in  view of lifting of embargo on Turkish importsGovernment is preparing programs to support domestic producers in  view of lifting of embargo on Turkish imports
Armenian NPP and Rusatom Overseas to sign Memorandum of UnderstandingArmenian NPP and Rusatom Overseas to sign Memorandum of Understanding
Vahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperationVahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperation
Minister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with LithuaniaMinister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with Lithuania
Ministry of Economy: Armenia intends to reach 7% economic growth in  2022Ministry of Economy: Armenia intends to reach 7% economic growth in  2022
Labor productivity in Armenia is lower than EAEU averageLabor productivity in Armenia is lower than EAEU average
Acba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple WatchAcba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple Watch
By the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central BankBy the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central Bank
 Converse Bank Brings Apple Pay to Customers  A safer, more secure and private way to pay with iPhone and Apple Watch Converse Bank Brings Apple Pay to Customers A safer, more secure and private way to pay with iPhone and Apple Watch
Armenia`s premier chairs discussion of wine industry development  prospects  Armenia`s premier chairs discussion of wine industry development  prospects  
Ardshinbank Brings Apple Pay to CustomersArdshinbank Brings Apple Pay to Customers
Cash circulation to be restricted in Armenia from July 1, 2020Cash circulation to be restricted in Armenia from July 1, 2020
Environmental protection ARMENAL`s priorityEnvironmental protection ARMENAL`s priority
Armenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chairArmenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chair
Armenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  CommissionArmenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  Commission
Armenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  CommissionArmenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  Commission
In 2021, the number of subvention programs in Armenia exceeded the  two-year figureIn 2021, the number of subvention programs in Armenia exceeded the  two-year figure
ANIF Fund will invest about USD 1.4 million in transport and cargo  transportation fieldANIF Fund will invest about USD 1.4 million in transport and cargo  transportation field
Food Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and PolandFood Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and Poland
Only 5.5% of the highway was built under North-South program in 12  yearsOnly 5.5% of the highway was built under North-South program in 12  years
President of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAEPresident of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAE
The influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDIThe influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDI
EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%
Armenian president`s visit results: Wizz Air Abu Dhabi to start  flights to YerevanArmenian president`s visit results: Wizz Air Abu Dhabi to start  flights to Yerevan
Armenia`s president meets with Masdar company CEOArmenia`s president meets with Masdar company CEO
The price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and InfrastructuresThe price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and Infrastructures
Vahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian sideVahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian side
Fly Arna, Armenia s national airline plans to launch air flights at  the end of MayFly Arna, Armenia s national airline plans to launch air flights at  the end of May
Gnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian sideGnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian side
Pashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirsPashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirs
Export of goods up to one million drams in Armenia will be exempt  from customs dutiesExport of goods up to one million drams in Armenia will be exempt  from customs duties
Armenia`s government grants loan to Armenian NPP Armenia`s government grants loan to Armenian NPP 
FLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flightsFLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flights
Armenian government to increase funding for subvention programs in  border communitiesArmenian government to increase funding for subvention programs in  border communities
Read more


Exchange rates
25.01.2022
RUB6.14-0.03
USD482.260.63
EUR544.28-1.21
GBP650.09-1.41
CAD381.72-0.56
JPY42.28-0.11
CNY76.040.09
CHF524.48-3.91